FHA mortgages 101
Until the birth of the 80/20 mortgage loan FHA was a great option for first time home buyers or those with little to put down. Now that these 80/20 loans have gone away the FHA mortgage loan is making a huge comeback. It’s little surprise here in Las Vegas Nevada given the fact it is the least amount of money down you can get away with as well as maintaining outstanding interest rates. First time home buyers may even qualify for DPA or down payment assistance from organizations such as Nehemiah, AmeriDream etc. There are FICO requirements to qualify for this program. FHA offers several program options such as Fixed Rate Mortgages offering 10, 15, 20 year fixed (temporary buydowns not allowed) or 25 and 30 year fixed rate mortages which do allow for a 2-1 temporary buydown.
Eligible borrowers include U.S. citizens and permanent resident aliens (non-permanent resident aliens may qualify) and non-occupant co-borrowers.
The properties you may obtain an FHA mortgage loan for include 1-4 unit properties, PUDs, Modular and Manufactured Homes (double-wides only)
The current FHA loan limits for Clark County Nevada which includes Las Vegas, Henderson, Green Valley, Summerlin and surrounding areas is $400,000. With so many REOs or bank owned properties on the market in the Las Vegas, Henderson Nevada areas this loan limit will allow you to purchase a lot of house!!
A very nice feature with the FHA Mortgage Loan is that the seller may contribute up to 6% of the loan amount towards borrowers closing costs. The 3% down payment required per FHA guidelines may come from borrower’s own funds, it may be a gift from a blood relative or it may come from a DPA organization as previously mentioned.
It looks as though rates will not go any lower and may hold for a few more months but I would expect nothing but rate increases from that point on. As more home buyers begin to snatch up the REOs in record numbers now is the time to begin looking for home before you miss the boat…
